Daily Mortgage Rate Updates:
Heading into the second week of November 2019 mortgage rates remain near 2019 lows however there remain some risks for mortgage rates to move higher in the coming weeks. The two main issues facing mortgage rates are:
- US – China trade deal
Another “unknown” factor is how the economic data is going to play out and will it negatively impact mortgage rates. A stronger than expected CPI report may trigger some additional selling in the bond market (specifically the Mortgage Backed Securities market) which could easily push mortgage rates higher. Another “unknown” factor is investor fears of significant selling as we move closer to 2020.
The good news is that mortgage rates are still significantly below where they were this time last year. Back in November 2018 some lenders were above 5.00% on 30 year fixed rate loans; more than 1% above where the market is today.
Mortgage Rates - Conforming Loans
Mortgage Rates - FHA Loans
Mortgage Rates - Jumbo Loans
Mortgage Backed Securities & Treasury Snapshot:
November 11, 2019:
The bond market is closed today; here is the information from Friday’s open: Mortgage Backed Security FNMA 3.0 started the day at 100.91 and the FNMA 3.5 coupon started the day at 102.42. The 10y Treasury yield started the day at the 1.94% level
November 12, 2019:
The bond market is closed today; here is the information from Friday’s open: Mortgage Backed Security FNMA 3.0 started the day at 100.84 and the FNMA 3.5 coupon started the day at 102.39. The 10y Treasury yield started the day at the 1.93% level.
November 13, 2019:
The bond market is closed today; here is the information from Friday’s open: Mortgage Backed Security FNMA 3.0 started the day at 101.08 and the FNMA 3.5 coupon started the day at 102.47. The 10y Treasury yield started the day at the 1.88% level.
The bond market is improving today due to concerns that the trade deal with China might not happen any time soon. This week was supposed top be the week the Phase 1 deal was going to be signed however in recent speeches and interviews given by the President and his Administration it appears an initial Phase 1 deal might not happen.
While it’s great to see bond markets improve I suggest not getting too excited for the potential of lower mortgage rates. Until we see the 10y yield drop below 1.81% in a meaningful way I think lenders will be cautious due to the risks that remain: a Brexit solution and a trade deal with China.
Lenders know at some point those two issues get resolved; the million dollar question is when.
November 14, 2019:
The bond market is closed today; here is the information from Friday’s open: Mortgage Backed Security FNMA 3.0 started the day at 101.19 and the FNMA 3.5 coupon started the day at 102.52. The 10y Treasury yield started the day at the 1.84% level.
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Important Economic Data This Week:
Here we cover the daily economic events that might impact mortgage rates. After the report comes out we’ll update the post with that information and comment on if there is a potential impact on on the Mortgage Backed Securities market and consumer mortgage rates.
There are no major economic reports on Monday due to the Federal holiday. On Wednesday we have the weekly Mortgage Market Index, and the Core CPI report. On Thursday we have the Core Producer Prices Index and weekly Unemployment claims. On Friday we have Retail Sales, Export Prices and Import Prices. There is also the New York Fed Manufacturing Index.
Mortgage Market Index:
Last week the index came in at 518.7, the purchase component came in at 241.0 and the refinance component came in at 2102.7. This weeks reading showed an increase from 518.7 to 568.4. The purchase component came in at 253.4 and the refinance component came in at 2374.6. The average 30 year fixed rate was 4.03%.
Last months reading came in at 2.4% and the market is expecting this months reading to show another gain of 2.4%. If the report shows a gain greater than what the market is expecting than it could mean trouble for mortgage rates heading into the last few days of the week.
Update – 11.13.19: The report showed annual CPI a bit lower than market expectations, it came in at 2.3%, however the month-month reading came in a bit higher than market expectations at a 0.4% increase.
After last weeks reading of 211,000 claims this weeks reading came in at 225,000 claims.
Core Producer Prices:
The market was expecting a reading of 1.5% (year over year) and a reading of 0.2% (monthly). This mornings report showed a 1.6% increase (year over year) and 0.3% (monthly).
JB Mortgage Capital, Inc.:
We offer industry low mortgage rates for both refinance and purchase transactions, personal one-on-one service and we have an A+ rating with the Better Business Bureau (BBB). We also have a top rating with the Business Consumers Alliance (AAA).
We utilize the latest technology to ensure a fast closing and Loan Officer Kevin O’Connor has over 14 years of experience as a mortgage professional. When it comes to mortgage rates please keep in mind that mortgage rates adjust daily; sometimes they adjust multiple times in a day when the bond market is volatile.
Also things like obtaining cash out, lower credit scores, higher Loan-To-Value ratios, rental properties and the subordination of a second mortgage will cause in an increase in your mortgage rate.
To obtain the most up-to-date quote, specific to your loan scenario be sure to contact Loan Officer Kevin O’Connor at 1-800-550-5538 or you can submit a “Contact Us” request on the our website.
Loan Officer Kevin O’Connor:
Kevin grew up in California and works with clients throughout the state. From the initial quote to the application to the final closing; Kevin works directly with each and every homeowner and encourages his clients to ask questions so that they’re better informed. He updates koloans.com on daily basis and you can connect with him on social media: Twitter Rates01